divide the benefit by amount spent to achieve it.
Take an ad campaign, for example.
The cost is what is spent on the advertising. The benefit is the increase in sales due to the advertising.
Benefit Cost Ratio (BCR) - This is the value obtained by dividing the benefit by the cost. The greater the value, the more attractive the project is. For example, if the projected cost of producing a product is Rs.10,000, and you expect to sell it for Rs.40,000, then the BCR is equal to Rs.40,000/Rs.10,000, which is equal to 4. For the benefit to exceed cost, the BCR must be greater than 1.
cost benefit ratio is the ratio to be applied in finding of potentiality of project proposed to be implemented in terms of cost and the available materials ( eg.Land ) for th project which in turn equalizing the sources of capital applied and the resources or input achieved in terms of the ratio in the ascending equation:
Benefit Cost Ratio (BCR) - This is the value obtained by dividing the benefit by the cost. The greater the value, the more attractive the project is. For example, if the projected cost of producing a product is Rs.10,000, and you expect to sell it for Rs.40,000, then the BCR is equal to Rs.40,000/Rs.10,000, which is equal to 4. For the benefit to exceed cost, the BCR must be greater than 1.
Benefit Cost Ratio (BCR) - This is the value obtained by dividing the benefit by the cost. The greater the value, the more attractive the project is. For example, if the projected cost of producing a product is Rs.10,000, and you expect to sell it for Rs.40,000, then the BCR is equal to Rs.40,000/Rs.10,000, which is equal to 4. For the benefit to exceed cost, the BCR must be greater than 1.
Advantages and disadvantages of benefit cost ratio
If the cost is more than the benefit.
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Critical Ratio is an index number computed by dividing the time remaining until due date by the work time remaining. As opposed to priority rules, critical ratio is dynamic and easily
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
Flat benefit formula is a method used by the company to calculate the contribution of the employer to the benefit plan of the employee. It is computed through the month of service and multiplies it by the predetermined monthly rate.
Cost Ratio = expenses/earnings
yes